**Industrial Demand Surges Along Canadian and Mexican Borders Amid Robust Cross-Border Trade**
Despite ongoing policy uncertainty, industrial demand is on the rise along the U.S.–Canada and U.S.–Mexico borders, supported by record-high commercial truck traffic and expanding operations from global companies such as LEGO and Tokai Kogyo. According to a new report from Marcus & Millichap, these developments are closely tied to increasing reliance on the United States-Mexico-Canada Agreement (USMCA), which companies are leveraging to sidestep proposed tariffs and maintain steady trade flows.
The report highlights that nearly half of all Canadian and Mexican exports—totaling a combined $180 billion—entered the U.S. through May 2024 under the protections and benefits provided by USMCA. This trend is expected to strengthen as exporters aim to shield their operations from the uncertainty of potential new tariffs.
“This dynamic should prevent significant shifts in U.S. trade with Mexico and Canada from occurring,” the report notes, pointing to a positive outlook for industrial markets, particularly in border towns and downstream metropolitan areas along the supply chain.
A prime example is Laredo, Texas, which reported three million cross-border truck crossings in 2024. In response to the heightened activity, the city currently has 12 million square feet of industrial space under construction—equivalent to approximately 25% of its existing industrial inventory.
As cross-border trade continues to evolve, the industrial sector is poised to benefit from increased regional integration and the strategic advantages offered by trade agreements like USMCA.
